Benefit: Convenience And Speed
In most 401k plans, requesting a loan is easy and fast and doesn’t require a lengthy credit check or application process. Typically, it doesn’t provoke an inquiry against your credit or affect your credit score in any way.
Many 401k plans will allow loan requests to be made with just a few clicks on a website, and you can have the money in your hand in a couple of days.
And this is all done with complete privacy. An incentive now being adopted by a few plans is a debit card, through which numerous loans can be made immediately in small portions.
